W Dividend Type Payments

Wayfair Inc. Class A dividend

Although W has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wayfair Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:55 AM ET):

Wayfair Inc. Class A (W)
Bid Ask Last Change Volume P/E Market Cap
98.98 99.32 99.18 +1.87 488K - 13B

W Dividend-Like Income Using Covered Calls

With W at 99.18, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 2.98 0.8
5% 4.96 1.4
10% 9.92 2.7

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 100.00 2.44 5 48.8 0.68 (0.7%)
Dec 26 100.00 3.20 12 26.7 0.68 (0.7%)
5% Yield On W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 100.00 2.44 5 48.8 0.68 (0.7%)
Dec 26 100.00 3.20 12 26.7 0.68 (0.7%)
10% Yield On W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 100.00 2.44 5 48.8 0.68 (0.7%)
Dec 26 100.00 3.20 12 26.7 0.68 (0.7%)

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